09/03/2018 - 10:26

Eastern increases stake in Finders

09/03/2018 - 10:26

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Indonesian group Eastern Field Developments has increased its stake in Finders Resources as the major shareholder pursues a hostile takeover of the copper miner valued at around $177 million.

Eastern increases stake in Finders
Finders is a copper producer with interests in Indonesia.

Indonesian group Eastern Field Developments has increased its stake in Finders Resources as the major shareholder pursues a hostile takeover of the copper miner valued at around $177 million.

The group now owns about 34 per cent, up from 27 per cent, and has extended the offer period for another week to March 23.

Eastern Field recently changed its 23 cents per share offer to unconditional and has lodged an application with the Takeovers Panel regarding concerns around production levels at Finders’ Wetar copper project in Indonesia.

Eastern Field director David Fowler said some larger sophisticated investors had sold their stake.

“We are pleased that more and more Finders shareholders are agreeing with us that 23 cents is compelling value, particularly given the significant uncertainties surrounding Finders’ operational and financial performance,” he said.

The board of Finders has rejected the Indonesian group’s offer, with a report by independent expert Deloitte valuing the company’s shares between 31 and 35 cents.

Eastern Field has raised concerns with the Wetar project’s production levels after output was 41 per cent below its 7,000-tonne nameplate capacity in the December quarter.

The group is seeking final orders with the Takeovers Panel that Finders provides corrective disclosure and a revised independent expert’s report.

Shares in Finders were flat at 23 cents each at 1:30pm AEDT.

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